Mistakes to Avoid When Planning Your Estate

Most people know by now that estate planning is about more than making a will. With people living longer than ever before, a complete estate plan should encompass a variety of events that might happen sooner or later. There are some common mistakes made, however, when it comes to estate plans. Read on to learn about three of them.

You Fail to Update Your Estate Plan

The plan you made a year or so ago may need to be looked at again. As things change in your life, so should your estate plan. A quick phone call to your estate attorney can often resolve minor issues, but you must ensure that wills, trusts, powers of attorney, and other provisions are kept up to date. Take a look at just a few events that would prompt an estate plan update:

• Family changes like births, deaths, divorces, adoptions, and marriages
• Changes of heart about leaving an inheritance to a family member, friend, or charity organization
• Real estate transactions such as sales and purchases
• Business changes
• The sale or loss of property, furnishings, collectibles, vehicles, and more

You Fail to Makes Plans for the Potential for Disability

Estate plans can extend their reach to more than you might think. You can do a great deal of planning ahead for events that might impact you as you age or become unable to handle your own affairs. The sooner you make plans, the easier it will be when the time comes to make a big change in your living situation or make a major health-related decision. Consider adding provisions that cover the following:

1. Powers of attorney: These legal instruments are so much more than just a way to handle a temporary situation; you can set up any number of powers of attorney that cover a wide range of needs. You can have them expire at the completion of a specific task, and you can have a power of attorney to that covers making important business decisions if you should become incapacitated. Healthcare powers of attorney (also called a living will) can make your wishes known in the event that you are unable to do so yourself.

2. Long-term care: You can purchase insurance now to cover your later needs at more affordable rates than if you wait.

You Wait Too Long to Make a Plan

Finally, one of the worst estate planning mistakes is failing to plan at all. You don't need to own a lot of property to have an estate plan that includes a will or a trust. If you have neither, you will be placing some very personal decisions in the hands of your local probate courts.

Speak to a law firm, such as McKone & Unruh, to learn more.